Patton Fund Management Inc. Has $3.50 Million Stock Position in Caterpillar Inc. $CAT

Key Points

• Patton Fund Management cut its Caterpillar stake by 33% in the second quarter, selling 1,616 shares and retaining 3,282 shares valued at approximately $3.50 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong second quarter, with revenue of $20.54 billion and EPS of $8.17, significantly exceeding analyst estimates. The company also raised its quarterly dividend to $1.63 per share, or $6.52 annually.
• The outlook remains broadly positive, supported by a roughly $72 billion backlog, AI-related power infrastructure demand and an average analyst target of $995.52; however, analysts and commentary warn that CAT’s premium valuation and production capacity could limit near-term upside.

Patton Fund Management Inc. reduced its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 33.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,282 shares of the industrial products company's stock after selling 1,616 shares during the quarter. Patton Fund Management Inc.'s holdings in Caterpillar were worth $3,495,000 at the end of the most recent quarter.

A number of other hedge funds have also recently bought and sold shares of the stock. Southland Equity Partners LLC grew its position in Caterpillar by 3.1% in the 2nd quarter. Southland Equity Partners LLC now owns 1,068 shares of the industrial products company's stock worth $1,137,000 after purchasing an additional 32 shares during the last quarter. Ables Iannone Moore & Associates Inc. acquired a new position in shares of Caterpillar during the second quarter valued at about $738,000. Independence Bank of Kentucky lifted its stake in shares of Caterpillar by 10.6% in the second quarter. Independence Bank of Kentucky now owns 2,623 shares of the industrial products company's stock valued at $2,793,000 after buying an additional 251 shares during the period. First Community Trust NA grew its position in Caterpillar by 32.9% during the second quarter. First Community Trust NA now owns 1,264 shares of the industrial products company's stock worth $1,346,000 after buying an additional 313 shares in the last quarter. Finally, Ballast Inc. grew its position in Caterpillar by 2.6% during the second quarter. Ballast Inc. now owns 3,881 shares of the industrial products company's stock worth $4,133,000 after buying an additional 100 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Record quarterly performance: Caterpillar reported approximately $20.5 billion in second-quarter sales and revenue, with stronger operating profit and margins. The results reinforce expectations for continued earnings growth. Caterpillar Marks Record Quarter with $20.5B in Sales and Revenues
• Positive Sentiment: Large backlog and raised outlook: A roughly $72 billion backlog and an increased 2026 outlook provide revenue visibility and strengthen the bullish case following the earnings release. The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and Astec Industries
• Positive Sentiment: AI and power demand: Analysts and bullish commentary point to demand for Caterpillar’s engines, turbines and heavy equipment from data-center construction and related power infrastructure. Much of the company’s large-engine capacity is booked years ahead. Bull of the Day: Caterpillar
• Positive Sentiment: Momentum and earnings revisions: Caterpillar was identified as a top momentum pick, while Erste Group raised its fiscal 2026 EPS estimate to $24.78 and fiscal 2027 estimate to $31.18. These revisions indicate improving profit expectations, although the bank maintains a Hold rating. Western Digital & 2 Momentum Stocks That Could Soar in 2026
• Neutral Sentiment: Execution is now key: With demand and orders strong, future upside depends on how quickly Caterpillar can expand production at its existing plants without weakening margins. Caterpillar Stock's Upside Is Sitting in Plants It Already Owns
• Negative Sentiment: Premium valuation: After a substantial five-year rally, valuation measures suggest CAT may be about 6% overvalued. Investors may already be pricing in much of the AI-related demand and earnings optimism, limiting near-term upside. Caterpillar Stock Could Be 6% Overvalued As AI Demand Lifts Outlook

Caterpillar Stock Up 1.7%

Shares of NYSE CAT opened at $857.35 on Thursday. The stock has a market cap of $394.10 billion, a PE ratio of 36.89, a PEG ratio of 1.51 and a beta of 1.60. The business has a fifty day moving average of $917.75 and a two-hundred day moving average of $824.70. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm's quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.72 EPS. As a group, equities research analysts expect that Caterpillar Inc. will post 26.56 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio (DPR) is presently 28.06%.

Wall Street Analysts Forecast Growth

Several research firms have commented on CAT. Zacks Research cut Caterpillar from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Morgan Stanley set a $915.00 price objective on Caterpillar and gave the company an "equal weight" rating in a research report on Friday, May 1st. Rothschild & Co Redburn upped their target price on Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Wells Fargo & Company raised their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. Finally, UBS Group lifted their price target on shares of Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Thirteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and an average target price of $995.52.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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